India Inc Goes Abroad - MAPE Advisory Group

India Inc Goes Abroad
Indian Companies' Foreign Acquisitions - Jan 2000 to Mar 2006
This study was prepared as a background paper for the Seminar hosted by the IIM Calcutta Alumni
Association on “India Inc Going Abroad – Investing and Managing Internationally’ at the Leela Palace,
Bangalore on April 19, 2006.
This research report was compiled by Jacob Mathew (jacob@mapegroup.com, +91-98450 63025)
and Sunil Jain (sunil@mapegroup.com, +91-99801 89000) of MAPE Advisory Group

THE BIG PICTURE
Overview
A steel company in Thailand, a boutique hotel in Australia, a truck manufacturer in Russia, a generic drug company in Belgium, a
telecom firm in Bermuda and a offshore oilfield in Australia; all of them have one thing in common - they are all flying the Indian
tricolor. Outcome of a new trend of Indian companies going abroad and acquiring overseas assets. The "Indian multinational" has
finally come of age. Global Investment bankers are courting Indian companies more as buyers than as sellers. Suddenly Indian buyers
have become a force to reckon with in many industries such as pharma, auto components and oil/gas.
As per our research, Indian companies acquired 244 foreign companies in the last six years (Jan 01, 2000 to March 31, 2006). The
number of Indian companies that are investing abroad has been steadily rising ever since the flagship deal of Tata Group acquiring
UK's Tetley Tea for US$431.2mn five years ago. In the calendar year 2005, there were more outbound cross-border deals than in-bound
deals; incidentally this was the first time that there were more Indian companies buying foreign assets than foreign companies buying
Indian assets. The volume of outbound deals was more than twice the volume of in-bound deals in 2005.
Overseas Acquisitions by Indian Companies
In 2005, India Inc. shelled out more than US$3.5 bn acquiring stakes in 104 overseas companies. In the first three months of 2006,
India Inc has invested US$1.15 bn for buying 17 companies overseas.
What does this signify? Are Indian companies looking more outwards? What drives this new trend of increasing out-bound crossborder
deals? This report looks to answer these questions by looking at the out-bound cross border deals done by Indian companies.
Before we look at the study results it would be useful to pause and take a good hard look at the raw data on out-bound cross border
deals done by Indian companies.
Research Methology
Value (US$mm)
4000
3500
3000
2500
2000
1500
1000
500
0
2000 2001 2002 2003 2004 2005 Q106
Source: Bloomberg, Merger Markets, Mape
Value No of Deals
Data on cross-border capital flows have always been problematic. In fact, just the footnotes in the official capital flow statistics of IFC
and UNCTAD will qualify as a stand-alone research thesis. Trade literature and specifically asset-trade literature have long debated on
the usefulness and reliability of cross-border capital flow data. The usual problems associated with the data include the wrong reporting
of the investor country, transfer between affiliate companies wrongly classified as investments and general opaqueness in capital flow
data. For instance an US company investing in an Indian business through a Mauritius holding company is officially tracked as capital
flow from Mauritius into India. So much so that in the early years following liberalization the Indian Government routinely published
data showing Mauritius as the largest foreign investor in India forgetting the fact that most of these investors were "located" at Edith
Cavell Street in Port Louis in Mauritius.
For the purposes of this study, we looked at cross-border Indian M&A data collated by various sources including Bloomberg, Merger
Markets and Reserve Bank of India. We had a starting list of 300+ outbound deals done by Indian companies in the period Jan 1, 2000
to March 31, 2006.
1
120
100
80
60
40
20
0
No. of Deals

The Big Picture
This starting list of out-bound deals included a host of deals that would not normally qualify as an out-bound deal by an Indian
company. For identifying the deals we scanned the data sources and media reports for information on all "Indian companies" buying
"overseas companies/ assets" considering the highlighted terms as conventionally understood in general parlance.
Problems with the data include the infirmities associated in certain deals as below:
Indian companies buying the Indian operations of foreign corporations. E.g. Nicholas Piramal's buy-out of Rhone-Poulenc's Indian
subsidiary or AV Birla Group's buy-out of PSI Data Systems from Group Bull. Both deals mentioned are technically as
out-bound deals done by Indian companies as actual deal consideration had passed on from an Indian buyer to a foreign
seller; in our opinion such deals are domestic deals as the asset/business being transacted is principally Indian in nature
and operations.
Indian companies buying foreign corporations whose principal activities are located in India. E.g. Crisil's buy-out of London based
Irevna, an equity research BPO Company and many such similar deals in the software sector. Many small to medium
Indian software companies are structured as subsidiaries of overseas located holding companies, which also act as the
front-end sales and marketing arm of the Indian operations. Here again our view is that such deals are essentially Indian in
nature.
Indian companies buying foreign corporations through their foreign resident affiliates or holding companies. Such deals do not usually figure
in the usual out-bound capital flows, as the buyer is a foreign resident entity. Case in point is Scandent Solutions'
US$120mn buy-out of Cambridge mortgage BPO operations. In our view, this is essentially an out-bound deal involving
an Indian company.
In the M&A world, many companies including publicly traded companies are often loath to disclose deal details. Confidentiality
agreements with counterparties and problems associated with past deal metrics being used (or misused) in negotiations in future deals
are often cited as reasons for this behavior. Consequently, most information on deal sizes available publicly tends to be off the mark.
A third problem is the substantial difference in the data points provided/used by the different agencies. For instance, Grant Thornton
estimates that Indian companies did a total of 136 outbound deals with a total value of US$4.3 bn in 2005 while Asiamoney put the
same count at 54 deals totaling US$4.75 bn. During the same period, Reserve Bank estimates that the total stock of "direct investments
abroad" by Indian companies rose from US$7.1 bn in 2004 to US$9.6 bn. An interesting aside is that as per RBI statistics, the total
stock of direct investment into India in end 2005 was US$44.5 bn signifying that Indian out-bound deals are 20% stake in value
compared to India bound foreign investment.
To mitigate the effect of these factors, we have attempted to have a
bottoms-up approach for this study by looking separately at all the
individual deals during the period. We have re-worked the raw data for
these and other discrepancies and have instead focused on the substance
rather than on the form of the deal. Thus our deal list includes the
Scandent-Cambridge deal but not the Crisil-Irevna deal or the
Piramal/Rhone Poulenc deal. We looked at multiple data sources,
spoke at times to the company/investment banker involved in the deal,
used our knowledge of the M&A environment to interpret conflicting
data points - all in order to paint what we hope would be a
comprehensive picture of Indian companies buying overseas
companies/assets.
For this study, we analyzed 244 deals in the period January 2000 to
March 2006. The ensuing pages of this report discusses the general
trends across industries and then goes on to discuss the industry
perspective for the main sectors which have witnessed significant cross
border deals. We finally detail all the 244 deals that were done during
the study period.
2
Sectorwise breakup by Volume of Deals
Oil & Gas, 13
Chemicals &
Fertilizers, 17
Automotives, 24
Metals &
Mining, 11
Consumer, 10
Software /
BPO, 82
Other, 37 Healthcare, 50

The Big Picture
Deal Landscape
Our analysis shows that
Software/BPO (33.6%) and Pharma/healthcare (20.5%) sectors account for more than half of the overseas acquisitions
in terms of number of deals.
Oil & Gas sector accounts for 18.6% of the total value of overseas acquisitions, largely due to the key acquisitions by
ONGC.
The average deal size stands at about US$35.1mn, though the average figure could be a misleading figure because of the
presence of a few large deals involving large investments.
The largest proportion of Indian acquisitions have been in Europe (~40%) and North America (~34%), showing that
Indian companies are acquiring / investing in more developed economies.
Except for few large transactions in the oil/gas, pharma and some other sectors most of these deals have been of low
value and bulk of the deals have been below US$10mn in terms of outward investment. It seems that Indian companies
are treading carefully and minimizing their risk through value buys.
Sector Value
(US$mm)
Note: Data between Jan 2000 and Mar 2006
Why are Indian Companies going abroad?
A key factor compelling Indian companies to look overseas is that in many industries the main market for growth is the now the global
rather than the domestic market. In pharma and auto component industries, it is not uncommon to find companies with export
revenues higher than or at the same level as domestic revenues. Software/BPO businesses in India have always been configured to serve
export markets. In many industries, lowering trade barriers and entry of multinationals into the Indian market have meant global
competition in local markets. In the new paradigm, going global is an imperative rather than "one of the many available growth
options" for many Indian companies.
A fast growing economy, an optimistically buoyant capital market and significant global investor interest into India have meant easy
availability of capital for Indian companies. Also easing regulations have permitted increased access to cheaper global funds. All this has
resulted in a host of Indian companies sitting on significant cash.
Clearly, buying foreign companies is often an easier and less risky way of going global than the long hard way of setting up greenfield
operations. Greenfield risk is often more pronounced in newer geographies. The need to go global is in most for Indian companies in
acquiring client relationships and distribution channels and not for manufacturing capacities. And in many Indian industries, it makes
sense for the top players to acquire overseas assets rather than Indian assets. Overseas assets bring in a new dimension for the
businesses and are often cheaper to buy than Indian assets. Indian pharma industry which saw more outbound cross border deals than
domestic deals in the last year is a good example. Dr Reddy's and Ranbaxy bought significant European assets in Q1 of 2006 and both
deals were priced in the 10-12x EBITDA range. Thanks to the booming stock markets, even run-of -the-mill domestic Indian pharma
companies enjoy a 15-20x P/E valuation in the Indian markets.
3
% of deal
value
Deal
Volume
% of deal
volume
Automotives 427.3 5.0% 24 9.8%
Chemicals & Fertilizers 655.2 7.7% 17 7.0%
Consumer 668.5 7.8% 10 4.1%
Healthcare 1,604.2 18.8% 50 20.5%
Software / BPO 1,115.4 13.0% 82 33.6%
Metals & Mining 970.5 11.3% 11 4.5%
Oil & Gas 1,587.0 18.6% 13 5.3%
Other 1,525.8 17.8% 37 15.2%
Total 8,553.8 100% 244 100%

The Big Picture
From the supply side perspective, availability of many companies for sale in Europe and USA and liquidation of private equity
investments in these regions are often cited as primary triggers for overseas acquisition. Also, for many small to medium sized
manufacturing companies in the developed economies, the changed economic environment has resulted in their existing business
model no longer being tenable from a cost competitive angle. The writing is on the wall and it becomes imperative to restructure their
businesses and re-work their cost structures. A Chinese or Indian buyer is often the only savior in such cases as the ability to plug-in to
a low cost country advantage is many a times the only panacea. Examples are legion. Grant Thornton estimated a "five fold increase" in
the amounts invested by foreign buyers from developing countries such as China and India in the UK market (EUR 5.5bn in 2005 up
from EUR 981mn in 2004). Examples cited included Tata Chemicals acquisition of Brunner Mond Holdings in November 2005 for
US$ 111.2mn.
Probably this twin edged demand and supply side drivers resulted in this splurge of cross-border deals that we witnessed from start of
2005. Deal volumes in 2005 were up 110% by volume and 390% by value relative to 2004. Going by the deal count for the first quarter
of 2006 which saw 17 deals totaling US$ 1.15bn, the current year will probably have significantly more international deals than 2005.
The Indian regulatory environment has also kept pace with the strides of the Indian multinational. In January 2005 the Indian
government removed the US$100 mn cap on foreign investment by Indian companies and raised it to the level of net worth of the
acquiring Indian companies. This move acted as a catalyst for foreign investments abroad. In March 2006, the Reserve bank of India
(RBI) liberalized several rules relating to overseas investment by Indian companies. It cleared the road for proprietary/ unregistered
partnership firms to set up JV or a wholly owned subsidiary abroad. The move will potentially enable diamond and commodity
exporters - which are mostly family run concerns - to reap the benefit of globalization.
What are Indian Companies buying?
The deal rationale is obviously different for the different deals. Is there an underlying theme for each industry or is that this big outward
push is the sum total of the different growth strategies of the individual companies in a particular industry? It is difficult to draw
necessary conclusions form such a large deal sample as ours that is spread across different geographies and over a long six year time
period. However, we attempt to draw some inferences from industry specific deals.
Software and BPO industry saw the largest deal count at 82 deals and is usually on the top for annual deal counts across the time
period. However the deal sizes are invariably small in size and the sector has witnessed only four significant US$ 50mn+ deals in the
study period- Scandent's Cambridge buy in Sep-05 for US$120mn, Patni's buy-out of Cymbal for US$67mn in Oct-04, Wipro's
Newlogic deal in Dec-05 for US$56.4mn and WNS' buy out of Trinity's mortgage claims processing business for over US$60mn. Most
acquisitions in this sector continue to be propelled by two main drivers - customer acquisitions and entry into new/niche domains. The
sector has also seen a fair number of small sized deals involving small to medium sized Indian companies buying overseas companies in
smaller deals often in the US$1-5mn range.
The size and nature of Indian cross border deals by Indian companies is insignificant given that export revenues are 90%+ for most
Indian companies and Indian companies are a force to reckon with in the global market place both in size and stature. Scandent's
Cambridge deal involving an Indian company buying an overseas asset worth twice its own revenues is more an exception than the rule.
Indian companies continue to prefer to sit on their cash pile (the four large companies in the sector had total cash assets of more than
US$1bn) and look for small value buys rather go after any transformational deals. An oft propounded theme in this sector is the buy
out of a US or European business with a local delivery capability and then off shoring the foreign operations while keeping the front
end intact. While this in theory is an excellent value preposition, successful examples of such deals are limited. Some of the small
Indian companies have burnt their hands badly in such maneuvers and the recent buy-out of some struggling US based BPO
businesses by Indian companies are still in the restructuring stages.
An interesting point to note that the in-bound cross border deals in this sector have been significant in scope and size with global
majors like IBM, Oracle, Flextronics and EDS investing significantly to buy Indian software/BPO companies. Indian companies who
are already global or have global ambitions are still to invest abroad in a significant manner. Are Indian companies reluctant to be
aggressive or is that in the evolving structure of the industry India is the best or the only place to be in? Jury is still out.
The Indian pharma industry has been the poster boy for out bound cross-border deals from India. And unlike in the Software/BPO
sector, pharma has witnessed more outbound activity than inbound deals in the cross border arena. First quarter of 2006 saw Indian
companies spending close to US$1 bn in buying up European assets. The increasing globalization of the Indian pharma sector and the
market access needs of the Indian companies to successfully leverage their technical capabilities and low cost advantages in foreign
markets are the main drivers for the heightened M&A activity.
4

The Big Picture
Again unlike the software sector, the big players like Dr Reddy's,
Ranbaxy and Sun Pharma has been in the forefront of this cross
border activity. Dr Reddy's acquisition of Betapharm in Feb 2006
for US$ 570.3mn is the largest cross border acquisition by a
private Indian company. The expanding generic market in the
developed nations, sustainable cost competitiveness enjoyed by
Indian companies, need for local operations to satisfy regulatory
and market requirements and limited growth opportunities in the
domestic market are all expected to continue to drive crossborder
M&A activity in this sector.
In the current environment, most Indian pharma companies have
more appetite for cross border than domestic deals. The stark
difference in deal valuations in India and other markets as
discussed earlier is one of the reasons for this. A more important
factor is the possibilities associated with a foreign buy including
expanding the product range of the acquired company, leveraging
the acquired infrastructure to enter newer markets and value
creation by plugging into India costs.
An interesting point to note is that of late, Indian companies have
become the buyer of choice for most international auctions of
pharma assets and investment bankers frequently talk about the
newfound enthusiasm amongst European and American sellers to
woo Indian buyers. Indian companies were recently reported to
be seriously in the race for two separate billion-dollar transactions
in the US though in the particular cases they were edged out in
the last minute by the global generic majors. We expect significant
more action on this industry and believe that we are close to
seeing large transformational acquisitions by Indian pharma
companies.
Oil & Gas sector has seen significant cross border activity led by
the two public sector companies - ONGC and GAIL. In
December 2005, ONGC bid and won a 45% stake in the Akpo
deepwater oil and gas field in Nigeria from South Atlantic
Petroleum for US$2bn, only to have the deal vetoed by the Indian
Government. ONGC had earlier invested US$136.5mn in 2003
and US$766.1mn in 2002 to buy ownership interests in different
Sudanese oil fields. ONGC's first significant foreign foray was for
the Sakahalin project in Russia with an investment of US$323mn.
ONGC's drive to acquire foreign assets has a geo political impact
and Indian/Chinese buyers are increasingly seen as serious
contenders for overseas oil reserves to cater to their expanding
energy needs. In this sector, GAIL has also acquired minority
interests in gas distribution companies in Egypt and China. We
foresee more cross-border deals in the refining and downstream
sectors by players such as Indian Oil.
The Indian automotive/ auto component sectors have also seen
significant out-bound cross-border M&A activity. Tata Motors
buy-out of Daewoo's commercial vehicle business in South
Korea for US$118.2mn in November 2003 is the largest deal in
this sector. Most of the deals in this sector have been done by a
few companies/groups, which have been in the forefront of
global acquisitions.
5
The Tata Group did five out bound deals totaling US$250mn in
Korea, UK, Spain and Germany. Amtek Auto bought four
companies across the US, UK, Germany and Bermuda markets.
Bharat Forge did deals in US, Sweden, China and Germany.
Mahindras were involved in acquisitions in China, Romania and
UK. The TVS Group bought auto component assets in UK,
Germany and Malaysia. Most of the other companies in this
sector have shied away so far from foreign acquisitions. However,
recent reports suggested that mid-sized Indian auto component
manufacturers were in the forefront for bidding for parts of a
large troubled component business in the US. Media reports
suggest that Indian companies are seriously eyeing more foreign
assets in the sector and this activity is bound to pick up with the
increased globalization of the Indian auto sector. Ability to plug
into low cost Indian manufacturing capabilities is often a
significant value creator for cross border deals. Bharat Forge
recently bought the forgings business of Tyco International with
a view to relocate the business to its home locale at Pune,
Maharashtra.
Metals & Mining is another sector, which saw significant out
bound deals. Indian companies have gone abroad in search of
captive access to natural resources for their own manufacturing
facilities in India. Birla Group bought two copper mines in
Australia spending US$100mn+ and Gujarat NRE Coke did three
separate colliery deals in Australia. In metals, the push is to have a
wider global manufacturing spread to cater to new markets and
become a significant global player. Tata Steel acquired NatSteel
Asia for US$283.7mn in 2003 and followed it up by buying the
Thai company - Millennium Steel - for US$398.5mn 2005. Essar
group acquired two steel mills in UK from Stemcor for about
US$100mn. Jindals also have been active and bought assets in
France and Indonesia.
In other sectors, outbound deals have been driven by the desire to
acquire international assets or capacity - either to support the
acquirer's domestic operations as in the case of VSNL's purchase
of Tyco Global Network in Nov 2004 for US$130mn and
Teleglobe International Holdings in Jul 2005 for US$254.3m or
Reliance's purchase of Flag Telecom in 2003 for US$191.2mn.
Videocon's purchase of Thomson's picture tube businesses in
Italy and China for a reported value of US$450mn in a structured
transaction is instances of Indian companies globalizing their
production capacities. Similarly Apollo Tyres bought the South
African based Dunlop Tyres in Jan 2006 for US$62mn.

The Big Picture
How are Indian companies paying for their deals?
Most, if not all, of the significant overseas transactions done by
Indian companies have been paid for in cash. Stock transactions,
the major form of M&A deals globally, have been noticeably
absent in the Indian transactions other than in a few reportedly
large transactions in the software sector where the sellers (often
of Indian origin) have been comfortable with taking the stock of
Indian companies as the deal consideration.
Why cash deals? Internationally more than 50% of the M&A
deals are stock deals. However, historically India Inc has done
cash deals for their domestic transactions; only a few of the
domestic transactions have been stock deals. Almost Indian
companies are still owned directly by their promoter shareholders
who are often directly in management. L&T and ICICI Bank are
probably the only exceptions on this count. This contrast with the
large publicly held corporations in the developed markets where
there are no identified promoter groups and most public
companies are "public" in the true sense of the word. Founder
families, even when there, have little control over the companies
they founded as in the case of Hewlett Packard which went ahead
and consummated the large merger deal with Digital despite stiff
opposition from its founders. Given the preponderance of
family shareholding in the Indian context, there is often
reluctance from the buyer's part to bring in another family into
the shareholding structure. This reluctance also extends to the
Seller who is often more happy to have cash rather stock in a
company run by another family. This peculiar Indian reluctance to
"share the table" is the main driver for cash transactions in the
Indian deal scope. Clearly, this preference of India Inc for cash
transactions has extended to their international deals.
Also, given the vagaries of the Indian stock market it would be
difficult to find a foreign Seller willing to accept buyer stock as
consideration. Regulatory hassles associated with approval for
stock issuance to foreigners for other than cash and capital
market requirements on lock-in period for new stock issuance
only further complicate this issue. While this aspect is mitigated
for Indian companies who are also listed in the foreign stock
markets (through ADRs/GDRs), we are yet to see stock as a
major currency for international deals originating from India.
But does this constrain the Indian buyer? Would Indian
companies have gone ahead and bought more companies
internationally if they could do stock transactions? Probably not.
Indian companies seem happy doing large cash transactions.
Funding sources are manifold. Easy liquidity in the Indian debt
markets and a booming capital market has meant easy availability
of cash for Indian buyers. A new trend that seems to be on is that
of leveraged buy-outs for international transactions. This involves
an Indian buyer leveraging the acquired company's assets to debt
finance the acquisition transaction - with such debt invariably
being non-recourse in nature especially when the amounts
involved are large. Dr Reddys' buy-out of Betapharm, Germany
in 2006 for US$570mn was reportedly financed to the extent of
50% of deal value by such non-recourse debt with the balance
amount being financed through a planned FCCB (foreign
6
Different Environments, Different Strokes
M&A behaviour of Indian companies who have done
multiple deals in foreign countries is remarkable for its
range and uniqueness. Typically in the domestic
environment, M&A behaviour of most Indian
companies are predictable. Most investment bankers who
work closely with Indian companies have a fair idea of
what they want to buy and how much they will normally
pay. The context however is quite different in the
international deals done by many Indian companies. Dr.
Reddy's and Ranbaxy M&A buys in the last few months
are example of the same buyer having different intents -
strategic and opportunistic - depending on the
environment.
In February 2006, Dr. Reddy's bought Betapharm
Arzneimittel GmbH from the European private equity
house 3i for Euro 480mn. 3i had bought this company
from Hexal in March 2004 for Euro 300mn. Betapharm
is the fourth largest German generic company and had
estimated sales of Euro 140 mn and operating profit
(EBITDA) of Euro 40 mn. Dr. Reddy's purchase price
was 3.4x sales and 12.5x EBITDA - a rich valuation for a
rich market. Contrast this with Dr. Reddy's acquisition of
Roche's custom synthesis business in Mexico for US$
59mn in Nov 2005. Adjusted for working capital assets,
the purchase price was less than 1 time revenues.
Ranbaxy bought 96.7% stake in the Romanian generic
player Terapia SA for US$324 mn in March 2006. Terapia
had sales of US$ 80mn and Ranbaxy's purchase price was
4.1x sales and 11.6x EBITDA. In the same week,
Ranbaxy announced two more acquisitions - purchase of
Ethimed in Belgium and Allen SpA, Glaxo's unbranded
generic business in Italy. Company did not disclose details
of both these deals; but analysts estimate both these deals
to be priced at < $10mn and valued at about 1x time
sales.
currency convertible bond) issue at the Indian parent level.
Similarly Tata Tea's buy-out of Tetley, UK in 2000 for
US$431.2mn was largely financed through leveraged debt
without exposing the parent company's balance sheet to the
success or otherwise of the acquired business.
FCCB issues are increasingly the most popular route for raising
large moneys for Indian corporates esp. for acquisitions. Sun
Pharma and Wockhardt raised US$350mn and US$100mn
respectively in 2004-05 through FCCBs for funding planned
foreign acquisitions. Wockhardt is reportedly raising another
US$300mn through the FCCB route to fund its international
M&A initiatives. Others who have raised such convertible
include Glenmark Pharma, Tata Chemicals, Bharat Forge and
Amtek Auto. The popularity of FCCB as an instrument is
driven in main by the fact that most of these instruments are
structured as 5-year paper with a low coupon rate.

The Big Picture
The bondholder has the option to convert the bonds into equity shares at a pre-agreed valuation, which is usually at a 25-75% premium
to the issuer's stock price at the time of issue. Thus the bond investor gets an option to participate in the possible upside in the stock
price and capital preservation is guaranteed, as the conversion is optional. For the issuer, this works out as a low cost means of
financing, as the FCCB coupon rates are usually 2-300points below the general debt coupon rates.
How successful are Indian companies in their international deals?
The conventional wisdom in the international M&A literature is that only less than half of the M&A deals are a "success".
Literature is replete with empirical studies to buttress this low success
rate argument. Does India follow the international trends in this regard The Chinese Context
or
do we stand out? There are no significant studies' examining the success
Indian companies in their M&A deals. However, an informal Indian
dipstick study conducted by some investment bankers who together
were involved in close to 100+ significant M&A deals in India seem to
suggest that Indian experience in this regard have been good. The study
concluded that most of the Indian companies were successful in their
M&A endeavors with "success" being conventional defined as whether
"are you better off in having the done the deal or not?"
The peculiar Indian question. How do we compare
of
with China? China's Ministry of Commerce states
Chinese outbound foreign investment totaled $8.84
billion in 2005, more than double the $3.78 billion in
2004, which itself was more than double the $1.5
billion in 2003. Large deals included CNOOC's
purchase of Nigerian Akpo oil & gas fields (for which
the Indian Government refused permission for
ONGC to buy after it had won the bid saying "cabinet
took all factors into consideration and felt that this
wasn't a commercial opportunity worth pursuing"),
CNPC's buy of Canadian PetroKazhakstan for US$
4.2bn, Lenovo's $1.25 billion acquisition of IBM's
PC division and TCL International's majority-owned
joint venture with French company Thomson, which
got it the RCA brand and made TCL the world's
largest TV manufacturer. State owned Nainjing
Motors bought the troubled UK car maker MG Rover
for US$87mn.
Coming to international transactions of Indian companies, it is a bit
early to take the call as most of the large and significant transactions
have happened only in 2005. However, early indications are that the
international experience of Indian companies in doing deals is a happy
one. Tata Tea has successfully managed to integrate Tetley's operations
with themselves as also restructured the acquired company's balance
sheet. Dr Reddy's' buy-out of BMS Laboratories in UK has helped
them scale up their European business to US$35-40mn range from
target's business level of less than US$10mn in 2002. Wockhardt's
acquisition of Wallace Labs and CP Pharmaceuticals in UK and
Esparma in Germany has helped them build a strong profitable
US$150mn+ European franchise and the total investment for these
three buys was less than US$40 mn. Ranbaxy's success and early mover
advantage in the key US market have been credited to their Ohm
Pharma buy in the mid-nineties. Similar is the case of Sun Pharma with
their Caraco acquisition in the US. Our discussions with Godrej Soaps
indicate that things are moving well with their Keyline acquisition in
UK.
7
It had not been roses all the way. Last year CNOOC
withdrew its US$18.5bn bid for Unocal after pressure
from US Congress. Similarly appliance manufacturer
Haier withdrew its US$ 1bn+ bid for Maytag after
facing opposition.
Recently, Wall Street Journal in an article entitled
"China Inc.'s Ambitions," poses the question of
Wipro has been rumored to having had problems with their AMS' deal
whether China could "buy a hefty chunk of Walof
2002; but that did not stop the Company from aggressively pursuing
Mart" and answers in the affirmative. According to
other buy-out options and go ahead and do three deals worth $100mn+
the article, such a purchase would be "a vertical
in
the last three months. Scandent seems to have successfully integrated
integrator's dream" since if "Wal-Mart were a country,
their Cambridge buy and is going ahead and merging their Indian
it would be China's eighth largest trading partner"
company with their Mauritian holding company which includes the
acquired business.
Like inward FDI and foreign trade, is India lagging far
behind China in outbound FDI? India gets only a
tenth of what China gets in as inward foreign
While the jury is still out on this question, all the available indications investment. For outbound foreign investment, Indian
are positive.
levels are roughly half that of Chinese. So, is it just a
catch up game for India? Can we think and act as
aggressively as the Chinese? Could Wipro or HCL
have bid for the IBM PC business? Could Tata
Motors have bought MG Rover? Or will we find that
it wasn't a commercial opportunity worth pursuing.

The Big Picture
Which Indian companies are buying?
Is it that the first overseas deal is the most difficult one? Our study seems to indicate so. That probably explains the frequency of
overseas deals by the same Indian companies.
Of the 244 deals we analyzed, 163 deals involved Indian companies who have done more than one deal in the international context. Of
the buyers, ONGC did a total of nine deals and Ranbaxy has done eight deals. The other main players are United Phosphorous (7
deals), Wipro, Glenmark Pharma, 3i Infotech and Bharat Forge (5 deals each), Dr Reddy's. Amtek Auto, HCL Tech, Essel Propack,
GAIL, Mahindra& Mahindra and Nicholas Piramal (4 deals each). Amongst the business groups, Tatas have been the most prolific
buyer having bought assets in telecom (VSNL), tea, automotive, hotels and chemicals and invested close to US$ 1bn for global buys in
2005. AV Birla Group has also been active having bought assets in copper mines, pulp mill and chemicals.
Who are buying? Is it the Indian market leader or are the small-mid cap companies also active in the international deal front? The
experience differs widely across industries. In the pharma and auto sector, the Indian market leaders have been in the forefront of
global foray. However, this international outlook is not just confined to the big players. Mid sized companies in the pharma sector like
Glenmark and Strides Arco have also done a fair amount of global buys. Coming to the software/BPO sector the market leaders have
been reluctant to invest significantly for global deals. Tier II companies and even small-mid sized companies are more active than the
leaders in this sector.
Top overseas acquisitions by India Inc
Acquirer
Target
8
Country
Date
Deal Size
(US$mm)
ONGC Greater Nile Oil Project Sudan Oct-02 766.1
Dr. Reddy's Betapharm Arzneimittel GmbH Germany Feb-06 570.3
Tata Tea Tetley Group UK Feb-00 431.2
Ranbaxy Terapia SA (96.70% stak e) Romania Mar-06 324.0
ONGC Sakhalin-1 PSA Project Russia Dec-00 323.0
Videocon International Thomson SA (Cathode Ray Tube business) Europe, China Jun-05 289.2
Tata Steel Natsteel Asia Pte ltd SE Asia Sep-03 283.7
VSNL Teleglobe International Holdings USA Jul-05 254.3
Matrix Docpharma NV Belgium Jun-05 234.7
Reliance Gateway Net Flag Telecom USA Oct-03 191.2
Tata Steel Millennium Steel pcl Thailand Dec-05 175.0
Videocon International Thomson SA (Italian tube activity) Italy Jan-05 169.9
Apeejay International Premier Foods plc (Tea Business) UK Oct-05 140.5
ONGC 2 Sudanese Oil Interests Sudan Aug-03 136.5
VSNL Tyco Global Network USA Nov-04 130.0
Scandent Cambridge Services Holding USA Sep-05 120.0
Tata Motors Tata Daewoo Commercial Vehicle Korea Nov-03 118.2
United Phosphorus Advanta Netherlands Netherlands Feb-06 115.0
Tata Chemicals Brunner Mond Group Plc UK Nov-05 111.2
Essar Steel 2 Steel Mills UK Sep-05 100.4

What next?
Will 2006 and beyond see a further rise in international deals by Indian companies? The new found confidence of Indian buyers
supported by strong economy wide fundamentals seems to suggest so.
Most of the out-bound deals so far have been limited in scope and size; we foresee a trend of large deals going forward. While it maybe
sometime before we see Indian transformational deals similar to Chinese company Lenovo's purchase of IBM's PC business, we
believe Indian companies are increasingly bidding for large significant assets abroad. Case in point is Dr Reddy's purchase of
Betapharm and Ranbaxy's purchase of Terapia in Q1-2006. Media reports indicated that Wockhardt was seriously in the race for large
companies (around US$1bn in value) in the US. We believe it is just a matter of time before we see more large outbound deals from
India.
Who will do these deals? The big players or the small to medium sized ones? Across industries or only in some selected sectors? We
believe that the deal street will continue to be hot for global industries like pharma and auto components. A new trend that would
emerge could be for manufacturing companies especially in the small to medium sector. There could be significant value creation
opportunities for Indian buyers to acquire manufacturing companies in developed markets and then try and restructure the
manufacturing model by either offshoring some/all of the production activities or by plugging into India costs. If this trend catches up,
this could cut across industries as exemplified by Crompton Greaves' purchase of Pauwells transformer business or Essel Propack's
buys in UK, US and Singapore.
9

THE INDUSTRY CONTEXT
Automotives Sector
The Automotives sector includes both Automobiles and Auto component companies. It accounted for 9.8% of total deal volume and
5% of deal value.
Tata Motor's acquisition of Korea based Daewoo Commercial Vehicles is the biggest overseas acquisition in the sector. In Nov 2003,
Tata's bought 100% of this truck company for US$118.2mn which had annual sales of about US$ 250mn. Tatas have subsequently
bought auto design companies in UK and Germany and autopart companies in Spain and Germany. Amtek Auto bought four
companies in the last four years in the forgings and components business, though most of these buys were in the

The Industry Context
Chemicals & Fertilizers
The Chemical & Fertilizers sector includes chemical, agrichemical and industrial chemical companies. It accounts for 7% of total deal
volume and 7.7% of total deal value
Value (US$mm)
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 Q106
Source: Bloomberg, Merger Markets, Mape
Tata Chemicals' acquisition of Brunner Mond Group plc Nov -05 for US$111mn is the biggest deal in the sector. Deal activity has
gained momentum since 2005 with Tata Chemicals, United Phosphorus & Asian Paints making bulk of the acquisitions in the sector.
Sector has witnessed acquisitions in Sri Lanka, Australia, South Africa apart from Europe and North America. Big players like Tata
Chemicals have shown interest to acquire more firms overseas. Tatas lost a bid to acquire a large fertilizer company in Egypt in May-05.
Select Transactions in the Sector
Acquirer
Asian Paints
Target
SCIB Chemicals SAE
Country
Egypt
Value No of Deals
Date
Aug-02
11
Deal Size
(US$mn)
GHCL SC Bega Upsom Romania Dec-05 19.5
Tata
Chemicals
Tata
Chemicals
United
Phosphorus
United
Phosphorus
United
Phosphorus
United
Phosphorus
Indo Maroc
Phosphore SA
Brunner Mond
Group Plc
Oryzalin Herbicide
Operations
AG Value Inc.
Cequisa
Reposo SAIC
Morocco
UK
USA
USA
Spain
Argentina
Mar-05
Nov-05
5.1
38.0
111.2
Jun-03 21.3
Nov-04
Jun-05
Oct-05
35.8
14.1
11.0
8
6
4
2
0
No. of Deals
Stake / Remarks
60% in Egypt based company with annual
turnover of US$12.0mn
65% in the Romanian soda ash manufacturer
100% in Indo Maroc was a JV between
Kingdom of Morocco & Chambal Fertilizers
63.5% in the UK based chemical company
100% in oryzalin herbicide business of Dow
Agroscience
100% in the US based company having an
annual turnover of US$53.2mn
100% in the Spanish company having annual
revenues of US$23.5mn
100.0% in the Argentinean company with
annual revenues of US$12.5mn

The Industry Context
Consumer Sector
The Consumer sector comprises deals made in the Tea, Apparel and Textile. The Consumer sector accounts for 4.1% of total deal
volume and 7.8% of deal value.
Value (US$mm)
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 Q106
Source: Bloomberg, Merger Markets, Mape
Value No of Deals
Two tea deals (Tata-Tetley and Apeejay - Premier Foods) accounted for 87% of total deal value in the sector. Tata Tea's acquisition of
Tetley group for US$431.2mn is the biggest deal in the sector and is considered as a landmark deal for outbound Indian transactions.
Godrej's recent acquisition of Keyline Brands in the UK is the first instance of an Indian company buying a foreign business on standalone
basis rather than as a synergy/front- end for the Indian activities as in the case of tea industry deals.
The increasing prominence of Indian textile companies in the international market place has not mirrored in their deal activity. We
foresee heightened international deal activity in this sector driven by Indian companies' quest for customer relationships and global
production facilities.
Select Transactions in the Sector
Acquirer Target
Country
Date Deal Size
(US$mn)
Apeejay Premier Foods lpc UK Oct-05 140.5 1 0% in th list e de UK foo compa d yn
Int renational (T ae Bsuiness)
Dabur I dnia Redrock Lt .d UK Jul-03 5.0 UK base dR derock is engag de in
manufacturi gn, selling, incl duing export of
vario su cosm teics, toiletries a dn healthcare
products GHCL Dan iRver Icn. USA Dec-05 53.5 100% in US- absed manufacturer and
marketer of textil eproducts Godrej Keyline Brands Ltd UK Oct-05 2 .2 100% in UK based FMCG company eng gaed
in t eh manuf cature, marketing, sales a d n
distributio nof c som etics and toiletries;
annual turnover of GBP16.7mn in 2004
Raymond India Regency Tex tiles Portuguese Oct-01 3.0 100% in the Portugal-based garments Portug ea su
company
Tata Tea Tetl y Group e
UK eFb-0 431.2 100% in th eworld's N muber tea 2 bag
company, with a pr senec ei nover 35
co nutries
Tata Tae Fmal herb I cn. & USA Oct-05 Est. < 10.0 100% in Califor ina-based c mo panies selling
Goodearth herbal, fruit flavore d , medicinal and
traditional t aes
Remarks
12
6
5
4
3
2
1
0
No. of Deals

The Industry Context
Healthcare Sector
The Healthcare sector comprises companies in the Pharmaceutical, Healthcare, Life sciences and Biotech space. It has been next only
to the IT sector in terms of deal volume at 20.5%. It also accounts for 18.8% of deals by value.
Value (US$mm)
1000
800
600
400
200
0
Source: Bloomberg, Merger Markets, Mape
2000 2001 2002 2003 2004 2005 Q106
The healthcare sector witnessed a surge of activity in 2005 with 26 overseas deals. The first three months of 2006 has witnessed two of
the biggest deals in the sector; Dr. Reddy's acquiring Betapharm for US$570.3mn and Ranbaxy acquiring Terapia for US$324mn. More
than 90% of the acquisitions in this sector have been made in Europe and North America.
The highly regulated developed economies of Europe and US are becoming the key market for most Indian companies with increasing
generic push in these markets. Most companies in the sector have made their overseas ambitions clear by declaring intentions to acquire
more firms and we expect a fair amount of large cross border deals in this sector. Also, regulatory requirements of market access will
see a host of small sized deals in different markets as in the case of Glenmark Pharma. Given the increasing importance of India as a
base for clinical trials, we foresee more deals in this sector similar to Jubilant's buy-out of Target and Dishman's various deals.
Select Transactions in the Sector
Value No of Deals
Acquirer Target Country Date Deal Size
(US$mn)
Dr. Reddy's API Business of
Roche
Dr. Reddy's Betapharm
Arzneimittel GmbH
Jubilant Target Research
Associates
13
30
25
20
15
10
5
0
Remarks
Mexico Nov-05 59.0 100% in API business at Mexico including all
employees and business supply contracts
Germany Feb-06 570.3 100% in the fourth largest generic drug Co in
Germany; annual turnover of US$195.2mn;
USA Oct-05 33.5 100% in the US based full service Clinical
Research Organization (CRO)
Matrix Docpharma NV Belgium Jun-05 234.7 95.5% in the listed Belgium based generic
company
Ranbaxy RPG AVENTIS SA France Dec-03 80.0 100% in the French company ranked fifth in
generic market with a 6% market share;
Ranbaxy Terapia SA (96.70%
stake)
No. of Deals
annual sales of EUR52.0mn
Romania Mar-06 324.0 96.7% stake in Romania based company
having annual turnover of US$80.0mn
Sun
Pharmaceutical Caraco USA Mar-04 Est. < 50.0 63.1% in Detroit-based company
CP
100% in the UK based company; annual
Wockhardt Pharmaceuticals UK Jul-03 17.7 turnover of US$56.1mn

The Industry Context
Software / BPO Sector
Software/BPO sector has been an avid shopper in the international market place and accounted for 33.6% of all overseas acquisition
by volume though by deal size the share was only 13% implying a large amount of smaller deals.
Value (US$mm)
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 Q106
Source: Bloomberg, Merger Markets, Mape
Small players have been more active than big names like Wipro, Infosys and TCS. In fact given the size and global standing of Indian
software companies, there have not been many significant transactions in this sector. The sector saw a host of cross border deals in
2000 during the height of the tech boom; though the deal activity tapered off after that. Also, the sector has a few companies that are
founded /statured on foreign acquisitions - 3i Infotech and Scandent Solutions. Patni's buy-out of Cymbal at US$67mn and Wipro's
buy-out of Newlogic for US$56mn are the two largest deals in the software space. In the BPO space, Scandent's Cambridge buy and
WNS' purchase of the US mortgage BPO - Trinity Partners - are the most significant deals. Sector also saw a few "large" ($50-100mn
range) buy-outs in 2000 predominantly through stock transactions by Indian companies, though the current market equivalent valuation
of most of these stock deals will be less than US$5mn.
Here again, buying of foreign businesses and offshoring the work while keeping the front-end intact has been a recurrent them for
value creation possibilities. Except of HCL Tech which pursued this path for a few smaller deals, most of the large companies have
stayed clear of this. An interesting point is that in-bound cross border deals have been at significant level with global majors like IBM,
EDS, Oracle etc buying up significant assets in India. Indian companies who are already global or have global ambitions are still to
invest abroad in a significant manner. Is it that Indian companies are reluctant to be aggressive or is that the evolving structure of the
industry is such that India is the place to be in? Jury is still out.
Select Transactions in the Sector
Value No of Deals
Acquirer Target Country Date Deal Size
(US$mn)
Patni
Computer
Satyam
Computer
Scandent Cambridge
Services Holding
Tata
Consultancy
Wipro Newlogic
Technologies
14
Remarks
Cymbal Corp USA Oct-04 68.0 100% in California based IT firm; Annual
turnover of US$32mn
Citisoft UK Apr-05 23.2 100% in European business and systems
consulting firm
USA Sep-05 120.0 75% in US based BPO business with sales of
US$300mn and EBITDA of US$30mn
ComiCrom Chile Nov-05 23.0 100% of Chile based IT firm; 1257
employees; Annual revenues of US$35.5mn
Austria Dec-05 56.4 100% in Austria based Bluetooth and
Wireless LAN design firm
WNS Global
Servies Trinity Partners USA Nov-05 63.0
30
25
20
15
10
5
0
No. of Deals
100% in Arizona-based mortgage BPO
player

The Industry Context
Metals & Mining Sector
Metals & Mining sector accounted for 4.5% of total deal volume and 11.3% of deal value implying a fewer number of large deals.
Value (US$mm)
600
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 Q106
Overseas acquisitions have been largely made in Australia (50%) and SE Asia (25%). Average deal size is US$88.2mn. Tata steel's
acquisition of Millennium Steel for US$398.5mn is the biggest deal in the sector. Indian companies have shopped abroad for both
reasons - access to captive raw material sources and for production capacity in other markets. Increasing global stature of Indian mining
companies will mean increased global deal activity - both for captive raw materials and globalizing their production capacity.
Select Transactions in the Sector
Source: Bloomberg, Merger Markets, Mape
Value No of Deals
Acquirer Target Country Date Deal Size
(US$mn)
15
Remarks
Essar Steel 2 Steel Mills UK Sep-05 100.4 100% in Hy-Grade Pellets (HGPL) and Steel Corporation
of Gujarat (SCGL) from Stemcor, UK
Hindalco Mount Gordon
copper mine
Hindalco Nifty Copper
ops
Tata Steel Natsteel Asia
Pte ltd
Tat a Steel Carborough
downs coal
project
Tata Steel Millennium
Steel
Australia Jan-03 14.3 100% in the Australian copper mines from Western
metals Ltd
Australia Oct-05 94.0 50% interest in Maroochydore exploration project from
Straits Resources Limited, the listed Australian mining
company. Concurrently Hindalco acquired Straits
6
5
4
3
2
1
0
No. of Deals
(Nifty) Pty Ltd., from Straits
SE Asia Sep-03 283.7 100% in the Singapore based company which owns
steel mills in China, Thailand, Vietnam, Philippines
and Australia, with a capacity of 2.0mntpa; 26% per
cent equity in Southern Steel Berhad, a 1.3mntpa steel
maker in Malaysia
Australia Jul-05 Est. < 5.0 5% interest in the Carborough Downs coal project
located in Queensland
Thailand Dec-05 398.5 100% in Thailand based company having a capacity of
1.7mntpa producing long products for construction and
engineering steel for auto industries. It has three
operating facilities in Saraburi, Rayong and Chonburi
province

The Industry Context
Oil & Gas Sector
Oil & Gas sector accounts for 5.3% of total deal volume and nearly 18.6% of deal value.
Value (US$mm)
900
800
700
600
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005 Q106
Source: Bloomberg, Merger Markets, Mape
GAIL & ONGC account for all the deals made in the sector. Average deal size in the sector is US$122.1mn, far above the average of
US$35.1mn.
Hydro-carbon business is essentially global in nature that all the big players have traditionally been global rather than local. ONGC's
significant foray into international markets signals its transformation from a large domestic player to an emerging global player. ONGC
is expected to continue its foray in international markets with a view to securing equity oil.
Future deals can be expected from downstream players like Indian Oil Corporation
Select Transactions in the Sector
Value No of Deals
Acquirer Target Country Date Deal Size
(US$mn)
Remarks
Gail India Fayum Gas Co. Egypt Jan-04 9.7 19% in the Egypt based city gas
distribution company
Gail India NATGas Egypt Aug-04 19.0 15% in Egypt based natural Gas company
Gail India China Gas Holdings Ltd. China Feb-05 31.0 10% stake in the Chinese company
ONGC Sakhalin-1 PSA Project Russia Dec-00 323.0 100% in the Sakhalin project from OAO
Rpsneft Oil Company
ONGC Greater Nile Oil Project Sudan Oct-02 766.1 25% in the project from Talisman Energy
Co
ONGC 2 Sudanese Oil Interests Sudan Aug-03 136.5 100% interest in assets from OMV AG
16
6
5
4
3
2
1
0
No. of Deals

The Industry Context
Other Sectors
Overview
All other deals which have not been covered separately above have been accounted for in this category. In a broad measure they include
deals made in the Telecom & Media, Financial Institutions & Banking, Power & Utility, Packaging and Manufacturing space. All these
sectors put together account for 15.2% of total deal volume and 17.8% of total deal value.
Telecom (35.2%) and Packaging (8.6%) account for nearly 43.8% of deals made in the sector on value basis. Average deal size is
US$41.2mn. VSNL's acquisition of US based Teleglobe International for US$254.3mn and Reliance's acquisition of Flag Telecom for
US$191.2mn are the biggest deals in this category.
Acquirer Target Country Date Deal Size
(US$mn)
17
Remarks
Apollo Tyres Dunlop Tyres South Africa Jan-06 62.0 100% in the South Africa based company
producing bias and radial products; annual
turnover of US$210mn in CY2005
Crompton
Greaves
Reliance
Gateway Net
Reliance
Industries
United
Phosphorus
Videocon
International
Value (US$mm)
1200
1000
800
600
400
200
Select Transactions in the Sector
0
Source: Bloomberg, Merger Markets, Mape
Pauwels Tr ansformer
business
Belgium Feb-05 42.5 100% in Belgium based manufacturer of
three-phase transformers
Flag Telecom USA Oct-03 191.2 100% in the US company which has laid
submarine cables of around 50,000 km
across the globe and has hubs in Middle
East and the United States
Trevira GmbH Germany Jun-04 97.4 100% in German based manufacturers of
polyester fibres and filament yarns; Annual
turnover of EUR316mn in 2003
Advanta Netherlands Netherlands Feb-06
115.0 100.0% in the seed business of Advanta
group; annual turnover of US$ 74.5mn
Thomson SA (Italian
tube activity)
2000 2001 2002 2003 2004 2005 Q106
Value No of Deals
Italy Jan-05 169.9 No details available
VSNL Tyco Global Network USA Nov-04 130.0 No details available
VSNL
Teleglobe
International Holdings USA Jul-05 254.3
20
15
10
5
0
No. of Deals
100% in US based telecoms network
services company

TH E DEAL DETAILS
Automotives Sector
Acquirer Target Country Date Deal Size Remarks
Amtek Auto Smith Jones Inc USA Dec-02 7.4 100% buyout of Iowa based manufacturer of flywheel ring
gears and flex plates
Amtek Auto GWK Amtek Ltd. UK Jul-03 10.7 85% stake in UK based manufacturer of vehicle parts and
components and holding company of King Automotive
Systems Ltd. and Geo W King Ltd
Amtek Auto Zelter GmbH Germany Jul-05 Est. < 5.0 70% stake in Germany based manufacturer of machined turbo
charger housings
Amtek Auto Tyco International
(Forgings Business)
Bharat Forge Carl Dan Peddinghus
GmbH
Bharat Forge CDP AluminTechnik
GmbH
Bermuda Jan-06 5.0 100% stake in forgings plant which has an annual capacity of
30-35ktpa
Germany Nov-03 33.9 100% acquisition of German based company having an annual
turnover of US$142mn in an asset purchase deal
Germany Dec-04 8.3 100% acquisition of Germany based aluminum forge
components manufacturer having an annual turnover of
US$42.7mn
Bharat Forge Federal Forge Inc USA Jun-05 9.1 100% stake in US based company which had filed for
protection under Chapter 11 of the U.S. Bankruptcy Code
Bharat Forge Imatra Kilsta AB Sweden Sep-05 61.0 100% stake in front axle beams and crankshafts manufacturer
having an annual turnover of about US$132mn in 2004
Bharat Forge FAW Group China Dec-05 Est. < 5.0 Acquired stake in a JV with China's largest automotive group
Eicher Motors Design Intent
Engineering Inc.
USA Jun-05 2.5 100% stake in Detroit based engineering services provider
having several leading OEMs and Tier-1 manufacturers as its
customers
18

The Deal Details
Automotives Sector contd.
Acquirer Target Country Date Deal Size Remarks
Escorts Farmtrac Tractors
Europe SP
Poland Mar-05 Est. < 10.0 No details available
Mahindra & Mahindra Tractor Making Unit China Nov-04 8.0 80% stake in a JV with Jiangling Group of China to acquire
Jiangling's tractor unit
Mahindra & Mahindra Tractorul Utb Romania Sep-05 Est. < 50.0 Acquired the listed Romania based tractor manufacturer
having an annual turnover of US$51.8mn in 2004
Mahindra & Mahindra Stokes Group Ltd. UK Jan-06 12.5 100% stake in UK based automotive forging company; Annual
turnover of GBP25.0mn
Sona Koyo Steering Fuji Autotech France
SAS
France Oct-04 6.2 21.05% stake in a French company that makes steering
columns
Sundaram Fasteners Precision Forge Unit UK Nov-03 2.5 100% acquisition of the precision forge unit of UK based Dana
Spicer Ltd
Sundaram Fasteners Bleistahl Produktions
GmbH
Sundaram Fasteners Peiner Umformtechnik
GmbH
Germany Oct-04 Est. < 10.0 76% stake in a JV to make valve train parts, including valve
guides and valve seats
Germany Nov-05 13.8 100% stake in Germany based manufactures of fastener
products for the automobile, industrial and construction
sectors
Tata Autocomp Wundsch Weidinger Germany Aug-05 4.9 100% stake in German automotive company producing plastic
parts and systems for the automobile industry
Tata Motors Tata Daewoo
Commercial Vehicle
Korea Nov-03 118.2 100% buyout of the Korean truck company having annual
turnover of US$250mn
Tata Motors Hispano Carrocera SA Spain Feb-05 15.9 21% stake in Hispano of Spain
Tata Motors Incat International Plc UK Aug-05 90.3 100% stake in UK based design company having 650
enployees; Sales of EUR65.3mn and operating profit of
Tata Motors Cedis Mechanical
Engineering
EUR2.4mn in YE2004
Germany Jan-06 Est. < 5.0 100% stake in Germany-based provider of automotive
engineering and design services
TVS Autolec RBI Autoparts SDN BHD Malaysia Feb-04 Est. < 10.0 40% stake in the Malaysian autoparts company
19

The Deal Details
Chemicals & Fertilizers Sector
Acquirer Target Country Date Deal Size Remarks
Aditya Birla Dashiqiao Chem, China China Aug-05 8.5 No details available
Asian Paints Delmege Forsyth Sri Lanka Oct-99 Est. < 5.0 76% stake in a Sri Lankan company with annual turnover of
US$3.5mn
Asian Paints Pacific Paints Co Pte
Ltd.
Australia Nov-00 0.2 No details available
Asian Paints SCIB Chemicals SAE Egypt Aug-02 5.1 60% stake in Egypt based company with annual turnover of
US$12.0mn
Asian Paints Taubman Paints
Limited
Fiji Sep-03 1.5 100% stake in Fiji's fourth largest paint maker
GHCL SC Bega Upsom Romania Dec-05 19.5 65% stake in the Romanian soda ash manufacturer
Tata Chemicals Indo Maroc Phosphore
SA
Tata Chemicals Brunner Mond Group
Plc
United Phosphorus Oryzalin Herbicide
Operations
United Phosphorus BASF Aciflorfen
Business
United Phosphorus Cropserve South Africa
Morocco Mar-05 38.0 100% stake in Indo Maroc ; Target was a JV between Kingdom
of Morocco & Chambal Fertilizers
UK Nov-05 111.2 63.5% stake in the UK based chemical company
USA Jun-03 21.3 100% stake in oryzalin herbicide business of Dow Agroscience
USA, Brazil Sep-03 Est. < 5.0 100% stake in Acifluorfen, a herbicide active ingredient from
BASF
Mar-04 Est. < 5.0 20% stake in stake in South Africa based company which has
an annual turnover of US$122.0mn
United Phosphorus AG Value Inc. USA Nov-04 35.8 100% stake in the US based company; Target sales of
US$53.2mn
United Phosphorus Cequisa Spain Jun-05 14.1 100% stake in the Spanish company; Target sales of
US$23.5mn
United Phosphorus Reposo SAIC Argentina Oct-05 11.0 100% stake in the Argentinanean company; Target sales of
US$12.5mn
Vishnu Chemicals DTLL Inc. USA Sep-02 1.4 No details available
20

The Deal Details
Consumer Sector
Acquirer Target Country Date Deal Size Remarks
Apeejay
International
Bhartiya
International
Premier Foods plc (Tea
Business)
UK Oct-05 140.5 100% stake in the listed UK food company
Ompel SPA Milan May-03 1.5 100% stake in Milan-based international leather and
outerwear apparel company
Dabur India Redrock Ltd. UK Jul-03 5.0 UK based Redrock is engaged in manufacturing, selling,
including export of various cosmetics, toiletries and
healthcare products
GHCL Dan River Inc. USA Dec-05 53.5 100% stake in US-based manufacturer and marketer of textile
products
Godrej Keyline Brands Ltd UK Oct-05 22.2 100% stake in UK based FMCG company engaged in cosmetics
and toiletries; Target sales of GBP16.7mn in 2004
Malwa Industries Third Dimension
Apparel
N/A Jun-05 6.5 No details available
Marico Industries Sundari LLC USA Feb-03 Est. < 5.0 Purchase of luxury ayurvedic skincare products (sales
US$1.1mn)
Marico Industries Aromatic Cosmetics Bangladesh Oct –05 Est. < 5.0 Purchase of toilet soap brand to beef up its Bangladesh
franshise
Raymond India Regency Textiles
Portuguesa
Portuguese Oct-01 3.0 100% stake in the Portugal-based garments company
Tata Tea Tetley Group UK Feb-00 431.2 100% stake in the world's Number 2 tea bag company, with a
presence in over 35 countries
Tata Tea Fmal herb Inc. &
Goodearth
USA Oct-05 Est. < 10.0 100% stake in California-based companies selling herbal, fruit
flavored, medicinal and traditional teas
21

The Deal Details
Healthcare Sector
Acquirer Target Country Date Deal Size Remarks
Aurobindo Pharma Milpharm Ltd Europe Feb-06 Est. < 5.0 100% stake in UK based generic formulation pharmaceutical
company
Cadila Alpharma SAS France Jul-03 6.2 100% of the formulation business of Alpharma
Dishman
Pharmaceuticals
Dishman
Pharmaceuticals
Synprotec Ltd UK Apr-05 3.8 100% stake in UK based company having a track record of
more than 20 years of customer relationships with pharma
and chemical multinationals through its strong market
presence in Europe and the US
I03S Switzerland Dec-05 Est. < 5.0 100% stake in Switzerland based contract research company
Dr. Reddy's BMS Laboratories UK Mar-02 12.8 100% stake in UK based Company; annual turnover of
GBP8.0mn and profit after tax of GBP1.6mn in 2001
Dr. Reddy's Trigenesis Therapeutics
Inc
USA May-04 11.0 100% stake in a US based privately owned dermatology
Company
Dr. Reddy's API Business of Roche Mexico Nov-05 59.0 100% stake in API business at Mexico including all employees
and business supply contracts
Dr. Reddy's Betapharm
Arzneimittel GmbH
Glenmark Laboratorios Klinger Do
Bras
Glenmark Uni-Ciclo Harmonial
Brand
Germany Feb-06 570.3 100% stake in the fourth largest generic drug Co in Germany;
annual turnover of US$195.2mn; largest acquisition by an
Indian pharma firm.
Brazil Apr-04 5.2 100% stake in the Brazilian company with expected revenues
of US$7.0mn
Brazil Mar-05 4.6 100% buyout of a leading hormonal brand with sales of
US$3.1mn.
Glenmark Servycal SA Argentina Oct-05 Est. < 5.0 100% stake in the Argentine marketing company
Glenmark 2 FDA products from
Clonmel Healthcare
Ireland Dec-05 Est. < 5.0 100% stake in two FDA approved products from Clonmel
Healthcare Ltd; market-size for the products is
approximately US$50mn and has limited generic competition
22

The Deal Details
Healthcare Sector contd.
Acquirer Target Country Date Deal Size Remarks
Glenmark Bouwer Bartlett Pty
Ltd
South
Africa
Dec-05 Est. < 5.0 100% stake in a South African sales and marketing company
Hikal Marsing & Co AS Denmark Sep-04 6.0 50.1% stake in a Danish pharmaceutical marketing and
distribution company with annual turnover of US$60.0mn
Indegene Lifesystems Medsn Inc USA Sep-05 7.0 100% stake in US based provider of training and marketing
services to the healthcare industry
Jubilant PSI Supply NV Belgium Jun-04 16.5 80% stake in the Belgium based company; annual sales of
EUR9.6mn in YE Mar 2004
Jubilant Trinity Laboratories Inc USA Jul-05 12.3 64% stake in the US-based generic pharmaceuticals company
Jubilant Ta rget Research
Associates
Kemwell Private
Limited
Pfizer Health AB
(manufacturing plant
in Uppsala, Sweden)
USA Oct-05 33.5 100% stake in the US based full service Clinical Research
Organization
Sweden Feb-06 Est. < 5.0 100% stake in Uppsala a Sweden situated API and unfinished
drugs manufacturing facility from Pfizer Health
Matrix MCHEM Pharma Group China Feb-05 Est. < 5.0 60% stake in the China based company manufacturing fine
chemicals, active pharmaceutical ingredients and
formulations; annual turnover of ~US$35.0mn
Matrix Docpharma NV Belgium Jun-05 234.7 95.5% stake in the listed Belgium based generic company
Matrix Explora Laboratories SA Switzerland
Sep-05 Est. < 5.0 43% stake in the technology platform company based in
Mendrisio, Switzerland
Max India Altacast LLC USA Apr-00 7.0 22% stake in the US based holding company of `HealthCast'
an advanced healthcare solutions company dedicated to
improving access to critical patient car
Max India Mindcrossing USA Apr-00 4.0 15% stake in US based company which provides infrastructure
for rapid development of portals and exchanges
Natco Pharma Nick’s Drug Store USA Jan –06 Est. < 5.0 75% purchase of a New Jersey drug store with $20mn
revenues
23

The Deal Details
Healthcare Sector contd.
Acquirer Target Country Date Deal Size Remarks
Nicholas Piramal Dobutrex Brand Rights USA Jul-04 Est. < 5.0 100% rights of Dobutrex Brand in India from Eli Lily &
Company, USA
Nicholas Piramal Anaesthetics business
in UK
UK Dec-04 14.0 100% of Rhodia’s global Inhalation Anaesthetics business
based in UK
Nicholas Piramal Biosyntech Inc. Canada Jul-05 4.1 17.1% stake in the Canadian biotech research company
BioSyntech
Nicholas Piramal Avecia Pharmaceuticals UK Oct-05 16.9 100% stake in the UK-based CMO having annual turnover of
US$64.2mn
Opto Circuits Medical Equipment Co. Europe Oct-05 13.3 100% stake in the US based company which is developing a
novel blood glucose monitoring machine
Opto Circuits Eurocor GmbH Germany Dec-05 13.0 100% stake in the German company that designs and
manufactures stents
Ranbaxy Bayer's Generic Drug
business
Germany Apr-00 Est. < 5.0 No Details available
Ranbaxy Veratide Germany Jun-02 Est. < 5.0 100% of Veratide - the anti-hypertensive brand in Germany
from P&G
Ranbaxy Signature Pharma's
Liquid manufacturing
unit
USA Jul-02 Est. < 5.0 100% of a liquid manufacturing facility from the New Yorkbased
Signature Pharmaceuticals Inc on an asset-purchase
basis
Ranbaxy RPG AVENTIS SA France Dec-03 80.0 100% stake in the French company ranked fifth in generic
market with a 6% market share; annual sales of EUR52.0mn
Ranbaxy Efarmes - generic
product
Ranbaxy Terapia SA (96.70%
stake)
Spain Jun-05 Est. < 5.0 100% stake in a generic product portfolio accounting for
eighteen products belonging to the Spanish pharmaceutical
company EFARMES
Romania Mar-06 324.0 96.7% stake in Romania based company having annual
turnover of US$80.0mn
Ranbaxy Allen SpA Italy Mar-06 Est. < 10.0 Purchase of Glaxo’s unbranded Italian generic business
Ranbaxy Ethimed, Belgium Belgium Mar-06 Est. < 10.0 100% stake in a Belgian generic pharmaceutical distributor
24

The Deal Details
Healthcare Sector contd.
Acquirer Target Country Date Deal Size Remarks
Shantha Biotech East West Labs Inc USA Sep-00 Est. < 10.0 No details available
Shasun Chemicals RHODIA, FRANCE -
Custom Synthesis
business
France Apr-06 Est. < 5.0 100% stake in the pharmaceutical customs synthesis business
of Rhodia Pharma Solutions including the technology
Strides Acrolab Biopharma Venezuela Jun-05 Est. < 5.0 60% in Venezuelan pharmaceutical and marketing company
Strides Acrolab Sterile manufacturing
facility
Poland Jul-05 8.0 100% in Poland based sterile manufacturing facility
specializing in small volume parenterals
Strides Acrolab Beltapharm S.p.A Italy Jul-05 1.9 70% stake in Milan headquartered, semi solids and liquids
producer
Sun Pharmaceutical Caraco USA Mar-04 Est. < 50.0 63.1% stake in Detroit-based company
Sun Pharmaceutical ICN CO Hungary Ltd Hungary Aug-05 Est. < 10.0 Purchase of manufacturing facilities in Hungary and Ohio
from Valeant
Sun Pharmaceutical Women’s First
Healthcare
USA Sep-04 5.4 Purchase of three niche brands with sales of US$ 7.6mn
Sun Pharmaceutical Able Laboratories Inc. USA Dec-05 23.2 100% of the dosage form business of Able
Suven Life Sciences Synthon Chiragenics
Corp
USA May-03 Est. < 20.0 100.05 of the assets of New Jersey-based leader in
carbohydrate-based chiral technology for pharmaceuticals;
E&Y estimates the opportunity at US$20.0mn
Themis Medicare Gedeon Richter RT Hungary Aug-04 Est. < 5.0 No details available
Torrent
Pharmaceuticals
Heumann Pharma
GmbH
Germany Jun-05 Est. < 5.0 100% stake in a generic drug company with the Pfizer group
Wockhardt CP Pharmaceuticals UK Jul-03 19.3 100% stake in the UK based generic company with sales of
US$56.1mn
Wockhardt Esparma GmbH Germany May-04 10.9 100% stake in a German generic business
25

The Deal Details
Metals & Mining Sector
Acquirer Target Country Date Deal Size Remarks
Essar Steel 2 Steel Mills UK Sep-05 100.4 100% stake in Hy-Grade Pellets (HGPL) and Steel Corporation
of Gujarat (SCGL) from Stemcor, UK
Gujarat NRE Coke Bellambi & Balgownie
coal mine
Australia Oct-04 17.5 100% stake in Australia based NRE No. 1 colliery which holds
the Bulli, Balgownie and Wongawilli seams; estimated
reserves of 300.0mnt of coking coal
Gujarat NRE Coke Zelos Resources NL Australia Jun-05 13.6 18.6% stake in the Australian mining company having
exploration license in iron ore and other base metals like
gold, copper, platinum, nickel and zinc
Gujarat NRE Coke Rey Resources Ltd. Australia Oct-05 1.5 19.9% stake in Sydney based resources company
Hindalco Mount Gordon copper
mine
Australia Jan-03 14.3 100% stake in the Australian copper mines from Western
metals Ltd
Hindalco Nifty Copper ops Australia Oct-05 94.0 50% stake interest in Maroochydore exploration project from
Straits Resources Limited, the listed Australian mining
company
Jindal SAW Imphy Ugine Precision France Aug-04 Est. < 20.0 70% stake in a JV pact with Imphy Ugine Precision, one of the
divisions of Arcelor Group for manufacturing of High
Jindal Stainless Stainless steel Cold
Rolling Plant
Precision Metal Equipments
Indonesia Jul-04 25.0 100% stake interest in a running 50ktpa capacity stainless
steel CR plant in Indonesia from PT. Maspion Stainless Steel
Indonesia on asset acquisition basis
Tata Steel Natsteel Asia pte ltd SE Asia Sep-03 283.7 100% stake in the Singapore based company which owns steel
mills in China, Thailand, Vietnam, Philippines and Australia,
with a capacity of 2.0mntpa; 26% per cent equity in Southern
Tata Steel Carborough downs coal
project
Steel Berhad, a 1.3mntpa steel maker in Malaysia
Australia Jul-05 Est. < 5.0 5% stake interest in the Carborough Downs coal project
located in Queensland
Tata Steel Millennium Steel pcl Thailand Dec-05 175.0 100% stake in Thailand based company having a capacity of
1.7mntpa producing long products for construction and
engineering steel for auto industries
26

The Deal Details
Oil & Gas Sector
Acquirer Acquirer Target Target Country Country Date Date Deal Deal Size Size Remarks Remarks
Gail India Fayum Gas Co. Egypt Jan-04 9.7 19% stake in the Egypt based city gas distribution company
Gail India Shell CNG, Egypt Egypt Jan-04 1.7 22% stake in the Egypt based CNG company
Gail India NATGas Egypt Aug-04 19.0 15% stake in Egypt based natural Gas company
Gail India China Gas Holdings
Ltd.
China Feb-05 31.0 10% stake in the Chinese company
ONGC Sakhalin-1 PSA Project Russia Dec-00 323.0 100% stake in the Sakhalin project from OAO Rpsneft Oil
Company
ONGC Myanmar natural Gas
Venture
ONGC Greater Nile Oil
Project
ONGC 2 Sudanese Oil
Interests
Myanmar Jan-02 Est. < 50.0 20% participating interest from Daewoo International
Sudan Oct-02 766.1 25% stake in the project from Talisman Energy Co
Sudan Aug-03 136.5 100% stake interest in assets from OMV AG
ONGC Offshore Oil Field Australia Aug-04 Est. < 50.0 100% stake in the Australian offshore oilfield from Antrim
Energy Inc.
ONGC Oil Field / Ivory Coast West Africa Sep-04 Est. < 50.0 30% participating interest from VANCO Energy Inc
ONGC 36 Oil fields in Syria Syria Jul-05 Est. < 50.0 100% stake interest in the assets from Petro Canada
ONGC Cuban oil exploration
blocks 25 to 29, 35 and
36
ONGC Vietnam Oil
Exploration Block 128
& Block 127
Cuba Sep-05 Est. < 50.0 30% participating interest
Vietnam Nov-05 Est. < 50.0 No details available
27

The Deal Details
Software / BPO Sector
Acquirer Target Country Date Deal Size Remarks
3i Infotech Ivory Consulting USA Jun-00 Est. < 5.0 100% stake in US-based software service provider; annual
revenue of US$10mn
3i Infotech Command Systems Inc USA Jan-01 20.0 100% stake in US based information technology solutions and
services company
3i Infotech Insyst Technology Inc Middle East Oct-01 Est. < 5.0 100% stake in Middle east based ERP product company
3i Infotech Pipal Research USA Sep-04 3.9 51% stake in Illinois based equity research BPO
3i Infotech Formulaware Inc USA Nov-05 Est. < 5.0 100% stake in US based software company specializing in
software aimed at the chemical and paint industries
Aftek Infosys Arexera Information
Tech
Germany Mar-
03/Dec-
05
Est. < 20.0 100% stake in German knowledge management software
company with focus on Processes, Information and
Infrastructure management
Axis IT&T Axis Inc USA Aug-03 2.3 IT&T acquired 70% stake in the merged entity between IT&T
and Axis
Datamatics
Technologies
Datamatics
Technologies
Saztec International
Inc
USA Oct-00 1.4 100% stake in a US based diversified information processing
company
Corpay Solutions Inc USA Oct-03 4.5 100% stake in Detroit based company specializing in finance
and accounting BPO services
Four Soft Cargomate Netherlands
Four Soft Comex Frontier Singapore,
Malaysia
Oct-04 1.9 100% stake in Netherlands based premier transportation and
freight forwarding software solutions company
May-05 1.3 100% stake in Singapore based Software solutions provider
and a Malaysian ecommerce solutions provider for Logistics
Genpact Creditek Corp USA Jul-05 Est. < 5.0 100% stake in US based provider of order-to-cash cycle
outsourcing and enterprise receivables management services;
annual revenues of US$20.4mn in 2004
28

The Deal Details
Software / BPO Sector contd.
Acquirer Target Country Date Deal Size Remarks
I-Flex Solutions Equinox Corp. USA Nov-04 Est. < 5.0 100% stake in US based mortgage platform based company
I-Flex Solutions Login SA France Nov-04 Est. < 5.0 100% stake in France based specialist treasury front-end
solution provider
IKF Technologies NPR Solutions Inc USA Feb-05 0.3 100% stake in US based provider of I.T services
Infosys Tech Expert Information
Services
Australia Dec-03 22.9 100% stake in Australian based IT firm; Annual sales of
US$31.5mn
Kaashyap Radiant Softpride Systems Inc USA Jun-01 Est. < 5.0 No details available
KLG Systel COADE Inc. USA Jan-00 11.5 100% stake in US based engineering software developer
KPIT Cummins
Infosystems
KPIT Cummins
Infosystems
KPIT Cummins
Infosystems
Panex Consulting USA Aug-03 1.7 100% stake in Houston-based IT Consulting company
Pivolis France Nov-05 2.1 Substantial stake in French based company providing
offshore consulting services
Solvecentral.com Inc USA Nov-05 2.0 100% stake in US based software company
Mahindra & Mahindra Bristlecone Inc USA Feb-04 7.0 100% stake in San Jose, California based business process and
technology consulting firm
Mastek Limited Entegram LLC USA Oct-05 0.8 100% stake in US based software solutions company
specializing in customs application development; Annual
revenue of US$1.5mn
Megasoft Vector Consulting Inc USA Jul-01 Est. < 5.0 100% stake in Atlanta, US-based software services company;
Annual revenue of US$10.0mn
Melstar Information
Tech
Melstar Information
Tech
Linkhand PLC UK Sep-00 7.0 100% stake in UK-based IT firm along with its two subsidiaries
ITC Consulting GmbH Switzerland Sep-00 1.5 100% stake in UK operations of Zurich based ITC Consulting
29

The Deal Details
Software / BPO Sector contd.
Acquirer Target Country Date Deal Size Remarks
I-Flex Solutions Equinox Corp. USA Nov-04 Est. < 5.0 100% stake in US based mortgage platform based company
I-Flex Solutions Login SA France Nov-04 Est. < 5.0 100% stake in France based specialist treasury front-end
solution provider
IKF Technologies NPR Solutions Inc USA Feb-05 0.3 100% stake in US based provider of I.T services
Infosys Tech Expert Information
Services
Australia Dec-03 22.9 100% stake in Australian based IT firm; Annual sales of
US$31.5mn
Kaashyap Radiant Softpride Systems Inc USA Jun-01 Est. < 5.0 No details available
KLG Systel COADE Inc. USA Jan-00 11.5 100% stake in US based engineering software developer
KPIT Cummins
Infosystems
KPIT Cummins
Infosystems
KPIT Cummins
Infosystems
Panex Consulting USA Aug-03 1.7 100% stake in Houston-based IT Consulting company
Pivolis France Nov-05 2.1 Substantial stake in French based company providing
offshore consulting services
Solvecentral.com Inc USA Nov-05 2.0 100% stake in US based software company
Mahindra & Mahindra Bristlecone Inc USA Feb-04 7.0 100% stake in San Jose, California based business process and
technology consulting firm
Mastek Limited Entegram LLC USA Oct-05 0.8 100% stake in US based software solutions company
specializing in customs application development; Annual
revenue of US$1.5mn
Megasoft Vector Consulting Inc USA Jul-01 Est. < 5.0 100% stake in Atlanta, US-based software services company;
Annual revenue of US$10.0mn
Melstar Information
Tech
Melstar Information
Tech
Linkhand PLC UK Sep-00 7.0 100% stake in UK-based IT firm along with its two subsidiaries
ITC Consulting GmbH Switzerland
Sep-00 1.5 100% stake in UK operations of Zurich based ITC Consulting
30

The Deal Details
Software / BPO Sector contd.
Acquirer Target Country Date Deal Size Remarks
Moschip
Semiconductor
Verasity Technologies
Inc
USA Dec-03 8.7 100% stake in a privately held corporation, providing silicon,
software and support for last mile Internet connected
security solutions
Moser Baer CAPCO UK Jun-00 5.2 No details available
Mphasis BFL Navion Software
Development
China Oct-02 Est. < 5.0 100% stake in the captive software maker for financial giant
Capital One
Mphasis BFL Princeton Consulting UK Feb-05 8.4 100% stake in UK based company having annual sales of
US$13.4mn
Mphasis BFL Eldorado Computing
Inc.
USA Mar-05 16.5 100% stake in US based company having annual sales of
US$10.0mn
NIIT Osprey Systems Inc USA Mar-02 3.0 100% stake in US based privately held company engaged in
providing SAP solutions and services; Annual revenues were
Orient Information
Technology
Professional Access
Ltd.
over US$10mn in 2001
USA Mar-02 36.9 62% stake in US based software services company; annual
revenues of US$40.0mn
Patni Computer Cymbal Corp USA Oct-04 68.0 100% stake in California based IT firm; Annual turnover of
US$32mn
Polaris Software SIDOUN GmbH Germany Feb-01 1.1 20% stake in German based software company
Sai Info Call Centre College UK UK May-01 Est. < 5.0 100% stake in UK-based call centre training and education
centre
Sarla Technologies Synapse Systems LLC USA Jan-04 Est. < 5.0 100% stake in Pittsburgh, Pennsylvania-based software
development and automation firm
Satyam Computer Medbiquitous Services
Inc
USA Oct-01 1.0 7% stake in US based IT company
Satyam Computer Citisoft UK Apr-05 23.2 100% stake in European business and systems consulting firm
31

The Deal Details
Software / BPO Sector contd.
Acquirer Target Country Date Deal Size Remarks
Satyam Computer Knowledge Dynamics
Pte Ltd.
Singapore Jul-05 3.3 100% stake in Singapore-based intelligence solutions
consultancy firm
Scandent BWH France France Jul-05 Est. < 5.0 100% stake in France based technology firm focused on
enterprise resources planning
Scandent Cambridge Services
Holding
USA Sep-05 120.0 75% stake in US based BPO business; Annual sales of
US$300mn and EBITDA of US$30mn
Secova Eservices Empact EBS Inc USA Dec-04 Est. < 5.0 No details available
Servion Global
Solutions
5by5 Networks,
Incorporated
USA Jan-06 Est. < 5.0 100% stake in US based technological company
Silverline Tech Starpoint Solutions USA Aug-00 15.0 No details available; reported deal value of US$15mn
Silverline Tech SeraNova USA Oct-00 89.8 100% stake in US based designs and implements Internetbased
software in a stock transaction
SK Technologies Cirilium Holdings Inc. USA Jun-04 89.6 No details available; Deal value as reported by company
SSI Limited Albionnorion LLC USA Sep-00 58.9 100% stake in US based IT solutions provider in a stock
transaction
Subex Systems Fraud Management
Group
Subex Systems Fraud Centurion
Product Suite
TCS Financial Network
Services
France Jul-04 3.0 No details available
USA Aug-04 Est. < 5.0 No details available
Australia Oct-05 26.1 100% stake in Australian based provider of sophisticated,
mission-critical systems for the banking and finance industry
around the world
TCS ComiCrom Chile Nov-05 23.0 100% of Chile based IT firm; 1257 employees; Annual
revenues of US$35.5mn
Teledata Informatics Teledata Marine
Systems Pte Ltd
Singapore Jul-04 Est. < 5.0 21.1% stake in Singapore based firm funded by the Economic
Development Board of Singapore
32

The Deal Details
Software / BPO Sector contd.
Acquirer Target Country Date Deal Size Remarks
Teledata Informatics Bitech Dubai Dubai Sep-04 Est. < 5.0 100% of Bitech Dubai
Teledata Informatics Bitech Singapore Singapore Sep-04 Est. < 5.0 51% stake in Bitech Singapore
Teledata Informatics Insoft Systems Pte Ltd Singapore Sep-04 Est. < 5.0 No details available
Teledata Informatics Vanguard Technologies
LLC
USA Nov-05 Est. < 5.0 100% stake in US based company which specializes in
providing services based on SAP
Teledata Informatics Picnic Marine Company Thailand Dec-05 43.2 70% stake in Thailand based company; 200 employees;
Annual turnover of US$9.0mn; deal value as reported by
Teledata Informatics Alphasoft Services
Corporation (ASC)
company
USA Mar-06 14.2 100% stake in US based company providing high quality IT
services;
Virinchi Technologies Ksoft Systems Inc USA Aug-05 2.7 100% stake in New Jersey, USA based company focusing on
SAP implementations; 40 employees
Wipro Utility Consultancy
Business of AMS
USA Nov-02 26.0 100% stake in US based IT firm
Wipro Nervewire inc. USA Apr-03 18.7 100% stake in US based IT Consulting firm
Wipro Newlogic Technologies Austria Dec-05 56.4 100% stake in Austria based Bluetooth and Wireless LAN
design firm
Wipro mPower Inc. USA Dec-05 28.0 100% stake in US based IT firm; Annual revenues of
US$18.0mn
Wipro cMango inc. USA Feb-06 20.0 100% stake in US based IT firm; Annual revenues of
US$13.0mn
WNS Global Servies Trinity Partners USA Nov-05 63.0 100% stake in Arizona-based mortgage BPO
Zensar Technologi es Broadgate Systems Inc USA Aug-04 Est. < 5.0 No details available
Zensar Technologies OBT Global Inc USA Dec-05 Est. < 5.0 100% stake in US based SAP services provider
33

The Deal Details
Others
Acquirer Target Country Date Deal Size Remarks
Allcargo Movers (I) Ecu-Line N.V. Europe Jun-05 9.0 33.8% stake in Europe's largest Non Vessel Operated Common
Carrier; Target sales of EUR180mn (US$220mn) in 2004
Apollo Tyres Dunlop Tyres South
Africa
Jan-06 62.0 100% stake in the South Africa based company producing bias
and radial products; annual turnover of US$210mn in CY2005
Bilcare ProClinical Inc. USA Jul-05 Est. < 5.0 100% stake in Phoenixville based pharmaceutical services and
packaging company
Carborundum
Universal
Continental Engines Vege Group (European
business)
Abrasive Enterprises Canada Feb-06 1.7 100% stake in a closely held company based at Summerside,
Canada
Netherlands
Oct-05 6.0 100% stake in Netherlands based engine and related parts
manufacturer
Country Club India Babylon Hotels Sri Lanka Feb-06 2.2 100% stake in Sri Lanka based Babylon property; 30-suites
Crompton Greaves Pauwels Transformer
business
Belgium Feb-05 42.5 100% stake in Belgium based manufacturer of three-phase
transformers
Cyber Media SX2 Media Labs USA Feb-06 Est. < 5.0 20% stake in New York-based Sx2 Media Labs LLC, a company
formed by David Sills and Stoneybrook Capital
Essel Propack Propack Holdings AG Switzerland
Nov-00 11.0 Essel became the world's largest laminated tube co. after
this acquisition
Essel Propack Arista Tub es UK Aug-04 Est. < 5.0 100% stake in UK based seamless plastic tubes manufacturer
Essel Propack Telcon Packaging UK Apr-05 Est. < 5.0 100% stake in UK based laminated tube manufacturer having
12% market share
Essel Propack Tacpro Inc. USA,
Avalon Medical
services, Singapore
USA,
Singapore
Mar-06 10.7 85% stake in California based Tacpro and Singapore based
Avalon; Tacpro has annual sales of US$9.0mn
GMR Odeon Ltd. Mauritius Mar-03 Est. < 5.0 No details available
34

The Deal Details
Others contd.
Acquirer Target Country Date Deal Size Remarks
Graphite India Conradty Group Germany Jul-04 13.6 100% stake in the German graphite electrodes manufacturer
Gujarat Glass Glass Group Inc. USA Jul-05 Est. < 10.0 100% purchase of Flat river glass plant and 2 operations in
New Jersey
Havell's India Standard Electronics
Inc
ICICI Bank Investitsionno-
Kreditny Bank
IFGL Refractories Monocon International
Refrac
USA Apr-00 4.1 100% purchase of electrical equipment company
Russia May-05 Est. < 5.0 100% stake in the 3 branch Russian Bank having assets worth
US$4.4mn of which US$2.5mn are loan assets
UK Aug-05 16.1 No details available
Indian Hotels Pierre Hotel USA June –05 50.0 Purchase of luxury hotel of Manhattan Fifth Avenue
Indian Hotels W Hotel/SYDNEY Australia Dec-05 36.0 Purchase of Boutique hotel in Australia
Infomedia India Keyword Group Ltd UK Dec-05 3.2 Purchase of pre-press company along with its 49% holding in
Cepha Imaging, India
ISG Novasoft Gmaccm Technology Europe Oct-05 Est. < 5.0 100% stake in the financial services resource firm
Jindal PolyFilms REXOR SA France Nov-03 10.1 100% stake in flexible & luxury packaging film maker; annual
turnover of US$34.0mn
Kirloskar Brothers SSP Branded water &
fire pumps
Motherson Sumi
Systems
G+S Kunststofftechnik
GmbH
PSL Flecon Multi System
PTE LTD
UK Nov-03 8.4 100% of assets and business of pump manufacturing company
in UK
Germany Jun-05 2.5 100% stake in Germany based plastics injection molding
company; annual turnover of EUR9.0mn
Singapore May-00 0.1 No details available
35

The Deal Details
Others contd.
Acquirer Target Country Date Deal Size Remarks
Reliance Gateway
Net
Flag Telecom USA Oct-03 191.2 100% stake in the US company which has laid submarine
cables of around 50,000 km across the globe and has hubs in
Middle East and the United States
Reliance Industries Trevira GmbH Germany Jun-04 97.4 100% stake in German based manufacturers of polyester
fibres and filament yarns; Annual turnover of EUR316mn in
SBI Giro Commercial Bank
Ltd.
SBI Ocean International
Bank
Kenya Oct-05 Est. < 10.0
2003
76% stake in Kenya based bank
Mauritius Oct-05 10.0 No details available
SBI Bank Indomonex PT Indonesia Nov-05 Est. < 10.0 76% stake in Indonesia-based bank with seven branches in
Jakarta, Bandung and Surabaya
Sheela Foam Joyce Corporation
Limited
Australia Aug-05 12.1 100% stake in Australian listed company dealing in foam
products
Shriram Group & EU Dewind AG Germany Jul-05 0.1 100% stake in the turbine business of FKI
Tata Sons News Corp-CL A N/A Jan-04 Est. < 5.0 No details available
Tembec Inc; Aditya
Birla Group
St. Anne-Nackawic
Pulp Company Ltd
United Phosphorus Advanta Netherlands Netherlands
Canada Nov-05 100.0 100% acquisition was made through a JV between Aditya
Birla Group and Tembec in which Aditya Birla Group will be
the majority equity holder
Feb-06 115.0 100% stake in the seed business of Advanta Group; annual
turnover of US$74.5mn
Usha Martin Limted Brunton Shaw UK Sep-00 4.6 100% stake in UK based ropes manufacturer and supplier
Videocon
International
Videocon
International
Thomson SA (Italian
tube activity)
Thomson SA (Cathode
Ray Tube business)
Italy Jan-05 169.9 No details available
Europe,
China
Jun-05 289.2 100% of the Picture tube manufacturing operations of
Thomson SA including three manufacturing facilities in
Poland, Mexico and China.
VSNL Tyco Global Network USA Nov-04 130.0 No details available
VSNL Teleglobe International
Holdings
USA Jul-05 254.3 100% stake in US based telecoms network services company
36

MAPE Advisory Group is a boutique investment banking firm focusing on Mergers &
Acquisitions (M&A) and Private Equity (PE) deals. A Bloomberg ranked firm, MAPE has
closed 35 deals totaling US$ 350mn in the last four years. The firm has 20 investment
banking professionals working out of offices in Bangalore, Chennai, Delhi and Mumbai.
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Cunningham Road
Bangalore - 560052
Tel: 080 2235 1650/1/2
MAPE Advisory Group Pvt Ltd
7C, P M Towers
37 Greams Road
Chennai 600 006
Tel: 044 2829 5377/8
www.mapegroup.com
6, 1st Floor
Augusta Point
DLF Golf Course Road
Gurgaon
Tel: +91-98993 77446
IL&FS Financial Center
2nd Floor, Quadrant 'B'
Bandra Kurla Complex,
Mumbai 400 051
Tel: 022 2653 3644/5
Disclaimer: The information and views presented in this report are prepared by MAPE Advisory Pvt. Ltd. The information contained herein is based on our analysis and up on sources that we
consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it.